Bangladesh, India, Nepal launch trilateral power flow transaction

In a major breakthrough, Bangladesh, India and Nepal formally launched electricity flow from Nepal to Bangladesh through the Indian grid on Friday.

Indian Minister for Power and Housing and Urban Affairs Manohar Lal jointly inaugurated the power flow from Nepal to Bangladesh, along with Bangladesh’s Power, Energy and Mineral Resources Adviser Md Fouzul Kabir Khan, and Nepalese Minister for Energy, Water Resources and Irrigation Dipak Khadka through a virtual event hosted by the Ministry of Energy, Water Resources and Irrigation, Government of Nepal.

This historic occasion marked the first trilateral power transaction which has been carried out through the Indian grid, read a press release of the Ministry of External Affairs of India.

The Government of India had announced its decision to facilitate the first trilateral power transaction from Nepal to Bangladesh, through the Indian grid with an export of up to 40MW of power during the visit of the former prime minister of Nepal, Pushpa Kamal Dahal ‘Prachanda’ to India from 31 May to 3 June 2023.

During the visit, both sides had expressed their commitment towards greater sub-regional cooperation, including in the energy sector, which would lead to increased inter-linkages between the economies for mutual benefit of all stakeholders.

Subsequently, a tripartite power sales agreement between NTPC Vidyut Vyapar Nigam, Nepal Electricity Authority, and Bangladesh Power Development Board was signed on 3 October 2024 in Kathmandu.

The start of this power flow from Nepal to Bangladesh through India is expected to boost sub-regional connectivity in the power sector, the release added.